European Prosecutors Probe Major VAT Fraud Schemes at InnoEnergy and in France

The European Public Prosecutor's Office (EPPO) has opened a criminal investigation into InnoEnergy, a EU‑backed clean‑energy investment fund, over alleged VAT fraud, misuse of public funds and excessive executive remuneration. The probe covers the organisation’s headquarters in the Netherlands and its Spanish subsidiary, and stems from a complaint by Swedish businessman Lars Walldén who says he was forced to issue fraudulent invoices. Independent audits have also questioned the firm’s reported environmental impact and training figures.

In a separate operation, EPPO conducted a wave of raids in the Île‑de‑France region targeting a large‑scale carousel VAT scheme that used around 26 shell companies and 80 bank accounts to move roughly €160 million in two years, evading about €13 million in VAT. Six suspects were questioned, and assets seized included cash, a luxury car and documentary evidence.